How often should the planograms be refreshed?
What is a planogram?
A planogram is a visual plan or diagram that shows where and how the products should be placed on the shelves or in the stands to increase product visibility and customer purchases.
We have already discussed previously why it is important to maintain the planogram. Today we would like to discuss how often should the planograms be refreshed.
Why the planograms should be refreshed?
Undoubtedly, it is not enough to implement the planogram and leave it for a few years unchanged. Planograms should not be static and should help to keep the assortment relevant to the customers. The products that are less liked by the customers, should be removed, or their faces diminished on the shelves, therefore the more popular products should take more space.
How often the planogram should be refreshed?
The general rule of how often the planograms should be refreshed is six months. However, a few factors must be taken into account.
How product type determines how often planograms should be refreshed
1) The product is seasonal
Firstly, the planogram should be changed during the season, when the products are introduced only for a certain amount of time. This way, the data gathered from the current season can already influence an increase in the sales. Therefore, the planogram should be refreshed earlier than the six months.
2) The product is not seasonal
Secondly, when the product is not a seasonal item, it is better to have a longer period with the same planogram. This way, the data could show how the planogram efficiency depends on the various events and seasons.
Promotions and the data for planogram updates
Furthermore, Promotions influence planogram efficiency. Therefore, the time when there was a promotion for a few items from the planogram, should be analyzed carefully. Moreover, it should not be taken into the consideration for the new planogram implementation.
Overall, the items on the shelves should be relevant to the customer, therefore seasonality plays a big role in the frequency at which planograms should be refreshed. However, the planogram is most efficient when it is based on the gathered long-term data.